Every year Austria's tax rules shift a little — some numbers go up with inflation, a few benefits get restructured, and terminology gets renamed. 2026 has more of these changes than a typical year, and a couple of them are substantial enough to change your take-home pay noticeably. Here's everything in one place.
The Big Changes
1. Overtime tax exemption cut in half. From 2026, only the first 10 hours/month of overtime pay supplements are tax-exempt (down from 18 hours), and the monthly tax-free cap drops from €200 to €120. Full details: Overtime Tax Exemption Cut in 2026.
2. Tax-free employee bonus slashed. The Mitarbeiterprämie tax-free ceiling fell from €3,000 to €1,000 for 2025, and now must be paid for "objective, business-related reasons." Full details: Mitarbeiterprämie Cut.
3. Commuter euro triples. The Pendlereuro jumped from €2 to €6 per kilometer of one-way commuting distance, effective 2026 — the single largest percentage increase in this roundup. Full details: Pendlereuro Triples to €6/km.
4. Mandatory filing threshold raised. The income threshold that can trigger a mandatory tax return rose from €13,981 to €14,517. Full details: How to File Your Tax Return in Austria 2026.
5. Bicycle and motorcycle mileage halved. Since 1 July 2025, bicycle and motorcycle mileage dropped from €0.50/km to €0.25/km — a mid-year change many taxpayers missed. Full details: Bicycle and Motorcycle Mileage Cut.
Standard Inflation Adjustments for 2026
Most deductions and credits received their usual inflation-indexed bump:
| Item | 2025 | 2026 |
|---|---|---|
| Transportation deduction | €487/year | €496/year |
| Increased transportation deduction | up to €838/year | up to €853/year |
| Pensioner deduction | up to €1,002/year | up to €1,020/year |
| Increased pensioner deduction | up to €1,476/year | up to €1,502/year |
| Single-earner/single-parent credit (1 child) | €601/year | €612/year |
| Single-earner/single-parent credit (2 children) | €813/year | €828/year |
| Support money deduction (per child) | €37–€73/month | €38–€75/month |
| Child bonus (low-income single earner/parent) | €60/month | €61.60/month |
Most of these items rose by 1.73%, which is two thirds of the 2.6% inflation rate.
Income Tax Brackets
The bracket thresholds rose by the same 1.73%:
| Rate | 2025 up to | 2026 up to |
|---|---|---|
| 0% | €13,308 | €13,539 |
| 20% | €21,617 | €21,992 |
| 30% | €35,836 | €36,458 |
| 40% | €69,166 | €70,365 |
| 48% | €103,072 | €104,859 |
| 50% | €1,000,000 | €1,000,000 |
Above €1,000,000 the rate stays at 55% until 2029. See Austria Income Tax Brackets 2026 for examples.
What Did Not Change
Family Bonus Plus stays at €2,000.16 per child under 18 and €700.08 per child 18+. Family benefits are not adjusted for inflation in 2026 and 2027.
Other Notable Changes
- ID Austria becomes the primary way to access FinanzOnline; the old access-code recovery method is discontinued after October 2026. We'll cover this in detail in an upcoming post.
- Company car benefit-in-kind CO₂ threshold tightens to 126 g/km for cars first registered in 2025. We'll cover this in detail in an upcoming post.
- Late-payment and objection interest rates dropped, tracking ECB rate cuts. We'll cover this in detail in an upcoming post.
- "Home office" is now officially "teleworking" across all forms — same mechanics, new name. We'll cover this in detail in an upcoming post.
Terminology Changes (Not Substantive, But Worth Knowing)
A number of terms were renamed across the tax book without any change to the underlying rules: "tax allowance" became "tax-exempt amount," "home office" became "teleworking," "provident scheme" became "retirement scheme," and several form attachments were renamed from "Attachment" to "Supplement" (e.g., Supplement L 1k). If you're searching for guidance and the old term doesn't turn anything up, try the new one.
Bookmark This Page
We'll keep adding links here as we publish deep dives on each of these changes over the coming weeks. Use our income tax calculator to see how the 2026 changes affect your specific situation.